Achieving successful chair and CEO relations
There are many factors that contribute to the success of an organisation, but for charities the relationship between the chair and CEO can be one of the most important. This relationship sets the direction and tone for how the organisation is run and can be the difference between success and failure. When it’s working well, it can be a powerful bond where the most sensitive and challenging issues are discussed and strategy developed with confidence. But when it goes wrong it can create divisions, hinder progress and tarnish reputations. It can even make or break careers.
In a survey of charity chairs and CEOs from charities and not-for-profits recently to try and learn more about how sector leaders approach this vital relationship. One leader said: “If you get the relationship right, the opportunities are much higher: you can take more risks and create more ambitions for your service users and beneficiaries."
Human relationship
Despite almost obvious importance, a surprising number of leaders do not go out of their way to cultivate a strong bond. A strong chair and CEO relationship – like any human relationship – requires an element of catering to individual preferences, but it is too important to leave to chance or develop organically. While there are no rules set in stone on how to forge a winning partnership, there are several foundations on which the relationship can be built to help ensure success:
GOOD GOVERNANCE. Governance is much more than an administrative process – it serves as an important safety net for the chair, CEO and organisation. A successful relationship between leaders relies heavily on the presence of governance that clearly defines the respective roles and responsibilities.
Too frequently the problems that arise due to a lack of governance are wrongly attributed to a poor relationship between the chair and the chief executive. If the right governance and strategy is in place, and the charity is stable, then the relationship may work without much effort on either side. Without governance, the quality of the partnership will matter much more. In these cases, it’s down to the two personalities to work out how they will utilise their respective responsibilities to move the charity forward.
TAKING TIME TO ESTABLISH A RELATIONSHIP. The chair and CEO relationship can be very much like a marriage – it requires an investment from both parties to work. Yet it is remarkable how common it is for people invest no time or effort in the relationship when they take up their roles. While they may not want to socialise with each other outside a formal situation, those who do go to the effort and try and understand each other’s perspective are setting themselves up for success.
Ground rules
The best way to lay the foundations for a relationship is to establish some ground rules from the outset. This should cover three key areas:
- Alignment of values and a shared vision for the direction of the charity.
- Confirmation of the boundaries for both parties.
- Preferred modes of operation and commitment to open and free communication.
The chair in particular has to assume several different roles with the chief executive over the course of their duties; for example, at any given moment these could range from being a catalyst for the charity’s new ideas and direction, a performance manager, supporter, devil’s advocate or mentor. Taking the time to establish ground rules will help both to understand the different modes when performing certain roles.
Thus scheduling a drink might indicate the meeting is one of mentoring and informal feedback, while a more formal one to one appointment shows the meeting is for scrutiny or forward planning. Establishing a mode of operation and remaining consistent are a valuable relationship building process.
AVOIDING ASSUMPTIONS FROM THE START. The process of appointing a chair or CEO is comprehensive. Despite jumping through a large number of hoops to land a leadership role, too few people carry out even basic due diligence prior to a new appointment. Both sides can be guilty of this. Chairs sometimes do not want to take part in the selection of their chief executive, and chief executives can be so focused on securing a particular role that they forget to think about the bigger picture and the other personalities involved.
Chemistry check
All too often, everyone assumes they can make the relationship with the chair or chief exec work, that they don’t participate in a chemistry check or introductory meeting with their new colleague. Further, those joining charities from the private sector can assume their new role will have the same governance, processes and levers in the new sector – which is often not the case.
The problem is that the key questions seem so obvious that no one wants to ask them during the process. However, misunderstandings based on unstated expectations or assumptions can quickly escalate. Achieving clarity at the start – and insisting on it – feels like a bold move, but is essential. One survey respondent said: “A lack of time or connection meant one leader never found out how the other saw the world. No one knew that their priorities were so fundamentally misaligned until it really counted. By then it was too late.”
LEAVE EGO AT THE DOOR. There is no clear and accepted rule about who’s in charge between the chair and CEO. What is abundantly clear though, is that a chief executive who fails to manage their board properly will quickly complain about it, and spend most of their time not paying it proper attention. Conversely, a chair who does not engage until board meetings – and then fails to understand the operation – will quickly blame the CEO for not doing a thorough enough job.
Conversation responsibility
As a general rule, the chair should lead the conversation, but it’s the chief executive’s responsibility to make it work. Some chief executives may be more active than others in their stance, but both parties should have equal "power", which should be determined by the ground rules they establish at the start of the relationship.
So here are some practical thoughts for charity chairs:
GET THE GOVERNANCE RIGHT. Ultimately, the chair influences the governance processes of the charity. You should consider different models, even if you think they may be unpopular. This could include a unitary board that combines non-executive and executive, or a senior independent director or vice chair who can support you.
COMMUNICATION IS KEY. Start the conversation about how you are going to work together early. Agree the deal and ground rules, including boundaries and a plan for formal and informal meetings.
UNDERSTAND THE CHARITY'S MISSION. Respect and understand the emotional content of the CHARITY as much as the transactional. Be honest about what you really want to get from the role.
TRUST YOUR INSTINCTS. Insist on meeting the chief executive at the earliest opportunity and if you don’t think you can work together, don’t appoint them – or don’t join the board. Explore personal fit and empathy for the charity’s mission, but also alignment with your personal values. Be honest about whether this is someone you can do business with.
Cultural nuances
LISTEN. This is particularly important in the early days when you will need to understand the cultural nuances of the charity, in order to make sound judgments.
MIRROR, SIGNAL, MANOEUVRE. Find ways to indicate to your chief executive when you are about to change mode, so they can prepare and know where they stand.
Now here are some practical thoughts for charity CEOs:
DUE DILIGENCE. If you are applying for a new role, insist on opportunities to carry out your own due diligence before you reach an advanced stage of the recruitment process.
TRUST YOUR INSTINCTS. If you don’t think you can work with the chair then don’t. The relationship will be such a key part of your role that you will need to gain value from it.
A LITTLE RESPECT GOES A LONG WAY. Allow the chair to start the conversation and remember that respect is everything. You will need to work at the relationship once you’re in post. Invest time in building respect and learning how to manage upwards.
GOVERNANCE. Good board hygiene really matters, use it to frame your role and working relationship. Remember that the relationship is like any other: it’s about give and take. Acknowledge differences early.
Basic principles
The conditions for a successful partnership boil down to some extremely basic principles. With clear objectives, ground rules established from the outset and governance, the chair and CEO relationship has the foundations to stand the test of time and set a charity on the path to success. However, in many situations in the charity sector, the governance is just not in place, or if it is, it hasn’t been updated for a long time.
Compounding that, culture change can be slow, infrastructure light, and issues with the board can stray into executive territory. In these stages, a little effort to establish the basics and following the various foundations for a good relationship, explained earlier in this article, can go a long way.
